Where and how to cash an EE bond

You can cash an EE savings bond at most banks and credit unions, or directly through the U.S. Department of the Treasury. The easiest route for most people is their own bank — walk in with the bond and your ID, and they will process it on the spot. If your bank does not handle savings bonds, ask them to refer you to one that does, or contact the Treasury directly.

The Treasury's official route is through TreasuryDirect, the government's online bond management system. You can redeem bonds there if you registered them in TreasuryDirect when you bought them. If you have a paper bond, you will need to mail it to the Treasury's Retail Securities Services office in Parkersburg, West Virginia, along with a form and your ID copy.

Banks process bonds faster than the mail route — usually the same day or within a few business days. The Treasury's mail process takes two to four weeks from the day they receive your package.

Key Takeaways

  • Your own bank or credit union is the fastest way to cash an EE bond — bring the bond and a photo ID and they will process it immediately or within a few days.
  • If you own the bond through TreasuryDirect, you can redeem it online without leaving home.
  • Paper bonds can be mailed to the Treasury's Retail Securities Services office, but this takes two to four weeks.
  • You must wait at least one year after purchase to cash an EE bond, and you will lose the last three months of interest if you cash it before five years have passed.
  • The bank or Treasury will report the interest you earned to the IRS on a Form 1099-INT, and you owe federal income tax on that interest.

What you need to bring to the bank

Bring the physical bond itself and a government-issued photo ID — a driver's license, passport, or state ID card. The bank will not cash the bond without both. If you are cashing someone else's bond (as a beneficiary or executor), bring the bond, your ID, and documentation showing you have the right to cash it — typically a death certificate and a will or beneficiary designation.

Some banks may ask for your Social Security number or account number, so have those ready. Call your bank ahead of time if you are unsure whether they cash savings bonds — not all branches do, and some require you to go to a specific location.

How TreasuryDirect redemption works

If you bought your EE bond through TreasuryDirect and it is registered in your TreasuryDirect account, you can redeem it online without visiting a bank. Log into your account at treasurydirect.gov, find the bond in your holdings, and select the redeem option. The money will transfer to your linked bank account within one to three business days.

This method works only for bonds you bought electronically through TreasuryDirect. If you have a paper bond, you cannot redeem it through the website — you must use the mail-in process or take it to a bank.

The penalty for cashing before five years

EE bonds earn interest every month, but the Treasury penalizes you if you cash before five years have passed. The penalty is the last three months of interest — meaning you lose whatever interest the bond would have earned in months 57, 58, and 59 of ownership. If you cash at year three, you get back your principal plus interest through month 36, but nothing more.

After five years, there is no penalty. You can cash the bond anytime and receive all the interest earned up to that point. You must still wait at least one year to cash — bonds cannot be redeemed in the first year after purchase, no matter what.

Tax reporting and what you owe

The interest you earn on an EE bond is subject to federal income tax. When you cash the bond, the bank or Treasury will send you a Form 1099-INT showing how much interest you earned. You report this on your federal tax return for the year you cashed the bond.

You do not owe state or local income tax on EE bond interest — only federal. If you are unsure how to report the interest, ask your tax preparer or contact the IRS directly. The amount owed depends on your overall income and tax bracket, so the interest may push you into a higher bracket or affect other tax benefits you claim.

What happens if the bond is lost or damaged

If your paper bond is lost, stolen, or too damaged to cash, you can file a claim with the Treasury. You will need to fill out Form PD 1048 (Claim for Lost, Stolen, or Destroyed Savings Bond) and submit it with proof of ownership — typically your purchase records or bank statements showing the purchase. The process takes several weeks.

If the bond is only slightly damaged but still readable, most banks will cash it as-is. If it is severely damaged or illegible, the bank will likely refuse and direct you to file the claim form instead. Keep your purchase records in a safe place so you can prove ownership if you ever need to file a claim.

Cashing bonds held by a minor

If the bond is registered in a child's name, a parent or legal guardian must cash it on the child's behalf. Bring the bond, the guardian's ID, and the child's Social Security number. The bank will process it under the child's name, and the interest will be reported to the IRS under the child's Social Security number, not the parent's.

This can affect the child's tax situation — if the child has little or no other income, the interest may not be taxable, or it may be taxed at a lower rate. Consult a tax preparer if you are unsure whether the interest will trigger a tax bill for the child.

Frequently Asked Questions

Can I cash an EE bond before one year has passed?

No. The Treasury requires you to hold an EE bond for at least one year before you can redeem it. If you need the money sooner, you cannot cash the bond early — you will have to wait.

What if my bank says they do not cash savings bonds?

Ask them to refer you to a bank in your area that does, or contact the Treasury's Retail Securities Services office at 844-284-2676. You can also mail the bond to the Treasury at the address on their website, though this takes longer.

Do I owe taxes when I cash the bond?

You owe federal income tax on the interest the bond earned, reported on a Form 1099-INT. You do not owe state or local tax. The amount you owe depends on your tax bracket and other income — ask a tax preparer if you are unsure.

Can someone else cash my bond if I give them permission?

No. Only the bond owner or a legal representative (executor, guardian, or beneficiary with proper documentation) can cash the bond. The bank will not accept a power of attorney or written permission from the owner.

How long does it take to get the money after I cash the bond?

At a bank, usually the same day or within a few business days. Through TreasuryDirect, one to three business days. If you mail the bond to the Treasury, two to four weeks from the day they receive it.